Nearly 90% of the circulating supply of FXRP, the token that makes XRP usable in decentralized finance, is now at work in lending, collateral and similar DeFi uses, a DefiLlama report published on October 21 found. The FXRP DeFi deployment figures come from an analysis of the Flare network's adoption, technology and tokenomics.
Of the 145 million FXRP tokens outstanding, about 129 million sit inside DeFi protocols, the report calculates. According to TechBullion, the numbers suggest Flare's push to move assets from chains with limited smart-contract capability into decentralized finance is starting to take hold.
Rather than sitting in wallets or moving through simple transfers, the token is being put to work by holders in lending markets and other financial applications, the data shows.
Lending Drives FXRP DeFi Deployment
The token went live in September 2025 via Flare's FAssets system, giving XRP holders a way to hold a Flare-based version of their position and put it to work in lending and trading applications. Flare's data infrastructure underpins the system, confirming XRP Ledger transactions and backing the collateral processes that govern how assets are issued and redeemed, TechBullion reported.
Lending accounts for the biggest share of deployed FXRP, with activity taking place on Morpho and Kinetic on Flare, on Morpho's Ethereum deployment and on Euler on Monad. Rather than selling their XRP exposure, holders can use FXRP as collateral to take out loans in other assets, according to TechBullion.
The analysis points to a Sentora-managed RLUSD vault on Morpho as one example: in late September, 10.6 million FXRP collateralized roughly $7.9 million in supplied RLUSD.
Cross-Chain Expansion Lifts Off-Flare Usage
Roughly 20 million FXRP tokens are now deployed on networks other than Flare, a fivefold increase from July, the analysis found. The report credits the rise to the token's presence on several chains, Ethereum and Monad among them, and to its integration into Hyperliquid's HyperCore trading environment, according to TechBullion.
The token is built on LayerZero's Omnichain Fungible Token standard, which allows it to move between connected networks, and it is now available on seven networks. That expansion indicates the token's usefulness may extend well beyond applications native to Flare, TechBullion reported.
Cross-network deployment figures alone cannot show how much genuine independent demand exists for the token, nor how readily large positions could be exited if markets came under stress, according to TechBullion.
Flare Data Connector Fees Reach 45% of Revenue
Flare's data infrastructure is also taking on a larger role in the network's economic model, the report finds. Following the implementation of governance proposal FIP.16, fees from the Flare Data Connector have grown faster than the protocol's other revenue categories and now represent 45% of total revenue.
Smart contracts use the connector to confirm events and information that originate beyond Flare, such as transactions taking place on other blockchains. This matters because Flare's strategy extends beyond hosting decentralized applications, according to TechBullion.
FDC helps verify external events, while the Flare Time Series Oracle supplies price data that applications can use to value assets and manage collateral. The model creates potential demand for Flare's infrastructure as more applications rely on these services, TechBullion reported.
Flare is a Layer 1 blockchain compatible with the Ethereum Virtual Machine, focused on decentralized data infrastructure. The developments indicate that Flare's data-related services are becoming an increasingly important component of its network economy as applications built around XRP continue to grow.
Confidential Compute and FBTC Are Next Milestones
Another planned development is Flare Confidential Compute, which is intended to let smart contracts verify results derived from private institutional information without publishing the underlying data. Its first institutional application is live on the Songbird canary network and supports proof of reserves for Hex Trust's USDX stablecoin.
The report identifies deployment on Flare mainnet as a future milestone, rather than an already completed launch, according to TechBullion.
Flare's planned Bitcoin integration through FBTC is another milestone to watch. The announcement does not establish a launch date, so the integration remains a future development rather than evidence of current Bitcoin adoption on Flare, TechBullion reported.
Looking ahead, the report identified the planned FBTC product for Bitcoin integration, the mainnet deployment of Confidential Compute and higher protocol revenue as key milestones for Flare.
Utilization Does Not Equal Durable Demand
High deployment does not automatically translate into profitable lending, strong liquidity or lasting demand for Flare's native FLR token, according to TechBullion. FXRP's deployment figures provide a useful measure of utilization, but they do not independently establish lending profitability, organic user growth or resilience during market downturns.
For investors, the key indicators will be whether FXRP deployment remains stable without incentives, whether cross-chain activity continues to expand, and whether data-related fees grow enough to make a meaningful contribution to Flare's token economics, TechBullion reported.
The DefiLlama report points to growing use of Flare's infrastructure, particularly through XRP-backed lending and external data verification, according to TechBullion.
Conclusion
The DefiLlama report establishes that roughly 129 million of 145 million circulating FXRP tokens are deployed in DeFi, with lending the largest use case and off-Flare deployment up fivefold since July. Flare Data Connector fees now account for 45% of protocol revenue. The next concrete steps the report identifies are the mainnet deployment of Flare Confidential Compute, whose first institutional application is live on Songbird, and the planned FBTC integration, which has no announced launch date.
Frequently Asked Questions
How much FXRP is deployed in DeFi according to the DefiLlama report?
The DefiLlama report published on October 21 estimates that approximately 129 million of the 145 million FXRP tokens in circulation are deployed in decentralized finance, equivalent to nearly 90% of the supply.
What is FXRP and when did it launch on Flare?
FXRP is a token designed to make XRP usable in decentralized finance. It launched in September 2025 through Flare's FAssets system, which lets XRP holders obtain a representation of their holdings on Flare for use in applications such as lending and trading.
What share of Flare protocol revenue comes from Flare Data Connector fees?
Since governance proposal FIP.16 was implemented, fees generated by the Flare Data Connector have become a faster-growing revenue source than other protocol categories and account for 45% of total revenue, according to the report.
What is Flare Confidential Compute and where is it live?
Flare Confidential Compute is designed to let smart contracts verify results derived from private institutional information without publishing the underlying data. Its first institutional application is live on the Songbird canary network and supports proof of reserves for Hex Trust's USDX stablecoin; mainnet deployment is a future milestone.
When will Flare's FBTC Bitcoin integration launch?
No launch date has been established. The report identifies the planned FBTC product for Bitcoin integration as a key future milestone for Flare, so it remains a future development rather than evidence of current Bitcoin adoption on the network.
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